In Italy there was relief for investors. Assets surged after Prime Minister Matteo Renzi’s centre-left Democratic Party’s reforms were endorsed by a strong showing in the European elections. The FTSE MIB rose 2.9 percent outpacing other major European indexes.
Domestically focused banks such as UBI Banca and BP Milano rallied.
“We have three supporting factors, monetary policy is ample, the European election has not brought that many surprises and thirdly the geopolitical crisis in Ukraine seems settled for now with a new president who is willing to talk to Russia,” explained Baader Bank trader Robert Halver.
In Germany where Chancellor Angela Merkel’s Christian Democrats finished top, the DAX hit a record high before settling back to a rise of just under one percent. The eurozone’s blue-chip Euro STOXX 50 index was up 0.7 percent. Paris lagged the overall market edging up 0.4 percent.
The election over investors focus is now set to switch to the European Central Bank’s meeting on June 5. ECB President Mario Draghi said on Monday the bank must be “particularly watchful” for any negative price spiralling taking hold in the eurozone.
